On May 6, 2021 Acceleron Pharma Inc. (Nasdaq:XLRN), a biopharmaceutical company dedicated to the discovery, development, and commercialization of TGF-beta superfamily therapeutics to treat serious and rare diseases, reported financial results for the first quarter ended March 31, 2021 (Press release, Acceleron Pharma, MAY 6, 2021, View Source [SID1234579343]).
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"Acceleron made significant operational progress during the first quarter," said Habib Dable, President and Chief Executive Officer of Acceleron. "With the STELLAR Phase 3 trial already enrolling patients, we expect to initiate multiple mid- and late-stage clinical trials across our pipeline in pulmonary disease throughout 2021. We were thrilled to have data from the PULSAR Phase 2 trial of sotatercept in PAH recently featured in the New England Journal of Medicine. These data along with the results from our ongoing and planned Phase 3 trials will support our vision of establishing sotatercept as a backbone therapy for patients with all stages of PAH. We are looking forward to hosting a research and development day in late June to primarily discuss Acceleron’s plans and vision in rare pulmonary diseases with sotatercept in pulmonary hypertension and ACE-1334 in systemic sclerosis-associated interstitial lung disease, or SSc-ILD."
Added Mr. Dable: "In our hematology program, Acceleron and our partner, Bristol-Myers Squibb Company (Bristol Myers Squibb), are leveraging the key learnings from the early success of the commercial launch of REBLOZYL in the United States. We continue to transition from the initial bolus patient group earlier in the launch to underlying new patient demand. Bristol Myers Squibb expects launches in multiple additional countries across the globe this year as REBLOZYL receives reimbursement. Most importantly, assuming success in current and future potential indications associated with anemia, we continue to estimate that peak annual sales of REBLOZYL will surpass $4 billion."
Program Highlights
Pulmonary
Sotatercept: Pulmonary Arterial Hypertension (PAH)
Sotatercept is an investigational reverse-remodeling agent designed to be a selective ligand trap for members of the TGF-beta superfamily to rebalance BMPR2 signaling, which is a key molecular driver of PAH.
In April, the New England Journal of Medicine published results from the PULSAR Phase 2 trial of sotatercept in patients with PAH.
The Company plans to present updates from the PULSAR and SPECTRA Phase 2 trials of sotatercept in patients with PAH at the American Thoracic Society (ATS) 2021 International Conference, held May 14-19.
The Company will also present preclinical research on the effects of a murine version of sotatercept in animal models of PAH and pulmonary hypertension (PH Group 2).
Acceleron plans to host a webcast and conference call for investors and analysts on May 19, 2021 to discuss highlights from the PULSAR and SPECTRA trial updates at the congress.
Enrollment is ongoing in the registrational STELLAR Phase 3 trial in patients with PAH.
The Company expects to have the HYPERION (newly diagnosed intermediate and high-risk patients) Phase 3 trial and the ZENITH (WHO Functional Class IV) Phase 3 trial in expanded PAH populations initiated by the second half of 2021.
ACE-1334: Systemic Sclerosis-associated Interstitial Lung Disease (SSc-ILD)
ACE-1334 is an Acceleron-discovered, TGF-beta superfamily-based ligand trap designed to bind and inhibit TGF-beta 1 and 3 ligands but not TGF-beta 2. ACE-1334 has shown robust anti-fibrotic activity in multiple preclinical models of fibrosis.
Acceleron expects to start a Phase 1b/Phase 2 study to evaluate the activity of ACE-1334 in patients with SSc-ILD in 2021.
Hematology
REBLOZYL (luspatercept-aamt):
REBLOZYL is the first and only approved erythroid maturation agent designed to promote late-stage red blood cell (RBC) production. REBLOZYL is part of the global collaboration between Acceleron and Bristol Myers Squibb.
The Company recognized approximately $22.4 million in royalty revenue from approximately $112 million in net sales of REBLOZYL in the first quarter of 2021. This compares with approximately $23.0 million in royalty revenue from approximately $115 million in net sales of REBLOZYL in the fourth quarter of 2020.
In February, Acceleron and partner Bristol Myers Squibb announced that Health Canada approved REBLOZYL for the treatment of adult patients with transfusion-dependent anemia requiring at least two RBC units over 8 weeks resulting from very low- to intermediate-risk MDS who have ring sideroblasts and who have failed or are not suitable for erythropoietin-based therapy.
Bristol Myers Squibb initiated the INDEPENDENCE Phase 3 trial in patients with anemia-associated with myelofibrosis.
The Companies expect to present results from the BEYOND Phase 2 trial in adult patients with non-transfusion-dependent beta-thalassemia by the end of June 2021.
Enrollment is ongoing in the COMMANDS Phase 3 trial in patients with first-line lower-risk MDS, with topline results expected in 2022+.
Corporate Highlights
Acceleron is planning to host a research and development day on Tuesday, June 22, 2021 to primarily focus on its rare pulmonary disease pipeline and long-term vision.
Financial Results
Cash Position – Cash, cash equivalents and investments as of March 31, 2021 were $795.4 million, compared with $857.5 million as of December 31, 2020. Based on Acceleron’s current operating plan and projections, the Company believes that its current cash, cash equivalents and investments, along with the expected royalty revenue from REBLOZYL sales, will be sufficient to fund the Company’s projected operating requirements for the foreseeable future.
Revenue – Revenue for the first quarter of 2021 was $24.8 million, which includes $2.4 million of cost share revenue and $22.4 million of royalty revenue from net sales of REBLOZYL. All revenue was derived from the Company’s partnership with Bristol Myers Squibb.
R&D Expenses – GAAP R&D expenses were $57.3 million for the first quarter of 2021. Non-GAAP R&D expenses were $48.2 million for the first quarter of 2021, excluding $8.2 million and $0.9 million in non-cash, stock-based compensation and depreciation and amortization expense, respectively.
SG&A Expenses – GAAP SG&A expenses were $31.1 million for the first quarter of 2021. Non-GAAP SG&A expenses were $23.5 million for the first quarter of 2021, excluding $7.5 million and $0.1 million in non-cash, stock-based compensation and depreciation and amortization expense, respectively.
Net Loss – The Company’s GAAP net loss for the first quarter of 2021 was $63.5 million, or $1.05 per share. Non-GAAP adjusted net loss for the first quarter was $46.8 million, or $0.77 per share, excluding $15.6 million and $1.0 million in non-cash, stock-based compensation and depreciation and amortization expense, respectively.
Non-GAAP Financial Measures
Acceleron supplements its results of operations prepared in accordance with U.S. generally accepted accounting principles, or GAAP, with certain non-GAAP financial measures, including non-GAAP R&D expense, non-GAAP SG&A expense, adjusted net loss and adjusted net loss per share, that exclude stock-based compensation expense and depreciation and amortization expense. These results should not be viewed as a substitute for the Company’s GAAP results and are provided as a complement to results provided in accordance with GAAP. Management believes these non-GAAP financial measures provide investors with additional insight into underlying trends of the Company’s ongoing business, and are important in comparing current results with prior period results. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures. In addition, other companies may report similarly titled non-GAAP measures, but calculate them differently, which reduces their usefulness as a comparative measure. In the reconciliation tables below, Acceleron presents these non-GAAP financial measures reconciled to their comparable GAAP financial measures.
Conference Call and Webcast
The Company will host a webcast and conference call to discuss its first quarter 2021 financial results on May 6, 2021, at 5:00 p.m. EDT.
The webcast will be accessible under "Events & Presentations" in the Investors & Media page of the Company’s website at www.acceleronpharma.com. To participate in the conference call, please dial 833-494-1483 (domestic) or 236-714-2620 (international) and reference code #5559908.
An archived version of the webcast will be available for replay on the Company’s website for approximately one year.